We received real estate news this week from the Mortgage Bankers Association and Moody's:
- 1 out of every 7 homes is currently not paying their mortgage. With 51 million mortgages in America, that is 7.2 million homes not paying.
- 1 out of every 20 homes is in foreclosure. That leaves obvious math showing the number of delinquent homes soon to be in foreclosure.
- Commercial property fell .5% in February. Prices are down 25% from a year earlier, and down 42% from the October 2007 peak.
It is important to remember this is all occurring with the mortgage market fully nationalized (government now provides over 97% of all new home loans), and additional stimulus like home buyer tax credits.
When our government debt begins to implode like what you are seeing overseas (and it will), the artificial support under home prices will be removed and the collapse in home prices will finally begin.
